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We study information design in click-through auctions, in which the bidders/advertisers bid for winning an opportunity to show their ads but only pay for realized clicks. The payment may or may not happen, and its probability is called the click-through rate (CTR). This auction format is widely used in the industry of online advertising. Bidders have private values, whereas the seller has private information about each bidder’s CTRs. We are interested in the seller’s problem of partially revealing CTR information to maximize revenue. Information design in click-through auctions turns out to be intriguingly different from almost all previous studies in this space since any revealed information about CTRs will never affect bidders' bidding behaviors - they will always bid their true value per click - but only affect the auction’s allocation and payment rule. In some sense, this makes information design effectively a constrained mechanism design problem. Our first result is an FPTAS to compute an approximately optimal mechanism under a constant number of bidders. The design of this algorithm leverages Bayesian bidder values which help to "smooth" the seller’s revenue function and lead to better tractability. The design of this FPTAS is complex and primarily algorithmic. Our second main result pursues the design of "simple" mechanisms that are approximately optimal yet more practical. We primarily focus on the two-bidder situation, which is already notoriously challenging as demonstrated in recent works. When bidders' CTR distribution is symmetric, we develop a simple prior-free signaling scheme, whose construction relies on a parameter termed optimal signal ratio. The constructed scheme provably obtains a good approximation as long as the maximum and minimum of bidders' value density functions do not differ much.

The celebrated Bayesian persuasion model considers strategic communication between an informed agent (the sender) and uninformed decision makers (the receivers). The current rapidly-growing literature assumes a dichotomy: either the sender is powerful enough to communicate separately with each receiver (a.k.a. private persuasion), or she cannot communicate separately at all (a.k.a. public persuasion). We propose a model that smoothly interpolates between the two, by introducing a natural multi-channel communication structure in which each receiver observes a subset of the sender’s communication channels. This captures, e.g., receivers on a network, where information spillover is almost inevitable. Our main result is a complete characterization specifying when one communication structure is better for the sender than another, in the sense of yielding higher optimal expected utility universally over all prior distributions and utility functions. The characterization is based on a simple pairwise relation among receivers - one receiver information-dominates another if he observes at least the same channels. We prove that a communication structure M₁ is (weakly) better than M₂ if and only if every information-dominating pair of receivers in M₁ is also such in M₂. This result holds in the most general model of Bayesian persuasion in which receivers may have externalities - that is, the receivers' actions affect each other. The proof is cryptographic-inspired and it has a close conceptual connection to secret sharing protocols. As a surprising consequence of the main result, the sender can implement private Bayesian persuasion (which is the best communication structure for the sender) for k receivers using only O(log k) communication channels, rather than k channels in the naive implementation. We provide an implementation that matches the information-theoretical lower bound on the number of channels - not only asymptotically, but exactly. Moreover, the main result immediately implies some results of [Kerman and Tenev, 2021] on persuading receivers arranged in a network such that each receiver observes both the signals sent to him and to his neighbours in the network. We further provide an additive FPTAS for an optimal sender’s signaling scheme when the number of states of nature is constant, the sender has an additive utility function and the graph of the information-dominating pairs of receivers is a directed forest. We focus on a constant number of states, as even for the special case of public persuasion and additive sender’s utility, it was shown by [Shaddin Dughmi and Haifeng Xu, 2017] that one can achieve neither an additive PTAS nor a polynomial-time constant-factor optimal sender’s utility approximation (unless P=NP). We leave for future research studying exact tractability of forest communication structures, as well as generalizing our result to more families of sender’s utility functions and communication structures. Finally, we prove that finding an optimal signaling scheme under multi-channel persuasion is computationally hard for a general family of sender’s utility functions - separable supermajority functions, which are specified by choosing a partition of the set of receivers and summing supermajority functions corresponding to different elements of the partition, multiplied by some non-negative constants. Note that one can easily deduce from [Emir Kamenica and Matthew Gentzkow, 2011] and [Itai Arieli and Yakov Babichenko, 2019] that finding an optimal signaling scheme for such utility functions is computationally tractable for both public and private persuasion. This difference illustrates both the conceptual and the computational hardness of general multi-channel persuasion.